THE Planning Assessment Commission will have to weigh up the economic benefits of the Mandalong mine extension against its social and environmental impacts before making a final decision on the project.
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The commission's chair Gordon Kirkby said it would consider the state government's proposed amendment to the State Environmental Planning Policy.
The amendment scraps a controversial provision that made the significance of the resource "the principal consideration" when determining projects.
"The aim of the draft amendment is to provide a balanced framework," Mr Kirkby said.
"Whilst the application was lodged before the proposed amendment was announced, the commission is required to consider this in its determination of the application."
The extension would allow Centennial Coal to extract up to 12 million tonnes of thermal coal for 25 years at the existing rate of a million tonnes a year.
At a public hearing at Morisset Country Club on Tuesday, people from both sides of the issue spoke passionately to the Planning Assessment Commission panel.
Chief executive officer of Lake Macquarie council's economic development company Dantia, Adam Cougle, said his company supported the approval given the project's benefit-to-cost ratio.
"It is timely to deliberate if it is reasonable to balance 400 plus jobs in western Lake Macquarie [that the extension would produce] against the economic cost of development," Mr Cougle said.
"Just two weeks ago this city's residents were jolted and shocked by the announcement of 185 jobs losses from the planned closure of the Sanitarium factory."
Community Environment Network member Avril Lockton called the proposal "short-sighted" and "money-grabbing", with a "total disregard for inter generational equity".
"The environmental and social concerns must be adequately addressed alongside economic factors," Ms Lockton said.
She also said the Mandalong mine extension was driven by past coal prices and the proposal did not foresee the downturn in the global market for coal.
Mandalong resident Mick Astles was concerned with the increased amount of traffic the extension would lead to and showed pictures of trucks crossing onto the wrong side of Mandalong Road to avoid potholes.
"Mandalong Road is not coping now, so surely with ten times the amount of traffic it's not going to cope at all," Mr Astles said.
Mandalong mine manager John Turner said the mine was designed to minimise subsidence.
"Mandalong mine currently complies with its environmental protection licence; we have a very strong focus and put a lot of effort into that," Mr Turner said.
The commission will now consider the submissions it received and will announce its decision soon.
